UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the period ended June 30, 1997
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
Commission file number 333-16631-01
MINNESOTA LOGOS, A PARTNERSHIP
(Exact name of registrant as specified in its charter)
Minnesota 41-1804634
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
5551 Corporate Blvd.,
Baton Rouge, LA 70808
(Address of principal (Zip Code)
executive officers)
Registrant's telephone number, including area code (504) 926-1000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
CONTENTS
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Condensed Balance Sheets as of October 31, 1996
and December 31, 1996 and June 30,
1997 1
Condensed Statement of Operations for the Three
Months Ended June 30, 1996, and June 30, 1997
and the Six Months Ended June 30,1996
and June 30, 1997 2
Condensed Statement of Cash Flows for the Six
Months Ended June 30, 1996 and June 30, 1997 3
Notes to Condensed Financial Statements 4
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 5 - 6
ITEM 3. Quantitative and Qualitative Disclosures
About Market Risks 6
PART II - OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K
Signatures 7
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PART I - FINANCIAL INFORMATION
ITEM 1. - FINANCIAL STATEMENTS
MINNESOTA LOGOS, A PARTNERSHIP
CONDENSED BALANCE SHEETS
(Unaudited)
OCTOBER 31, 1996, DECEMBER 31, 1996, and June 30, 1997
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October 31, December 31, June 30,
1996 1996 1997
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ASSETS
Current assets:
Cash $ 2,500 $ 2,500 $ 2,500
Accounts receivable 50,707 123,375 79,663
Other current assets - - 3,210
Total current assets 53,207 125,875 85,373
Plant and equipment 1,959,015 1,934,146 2,097,010
Less accumulated
depreciation ( 171,026) ( 191,217) ( 293,043)
1,787,989 1,742,929 1,803,967
Other assets net of
accumulated amortization of
$41,388 in October 1996,
$45,875 in December 1996,
and $59,837 in June 1997 98,239 93,752 79,790
$1,939,435 $1,962,556 $1,969,130
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Trade accounts payable 2,327 35,715 19,074
Accrued expenses 5,121 6,860 2,274
Deferred income 264,498 298,182 222,384
Advances from affiliates 1,494,844 1,380,792 1,309,963
Total current liabilities 1,766,790 1,721,549 1,553,695
Partners' capital 172,645 241,007 415,435
Total liabilities and
partners' capital $1,939,435 $1,962,556 $1,969,130
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See accompanying notes to condensed financial statements.
MINNESOTA LOGOS, A PARTNERSHIP
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
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Three Months Ended Six Months Ended
June 30,1996 June 30,1997 June 30,1996 June 30,1997
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Logo sign revenue $ 221,251 $ 268,830 $ 425,001 $ 514,001
Operating expenses:
Direct expenses 49,909 49,802 137,073 122,389
General and administrative
expenses 44,003 50,891 108,578 100,835
Depreciation 36,807 45,038 66,501 101,947
Amortization 6,981 6,981 13,962 13,962
137,700 152,712 326,114 339,133
Operating income 83,551 116,118 98,887 174,868
Loss on disposition of
assets 12,344 440 81,857 440
Net income 71,207 115,678 17,030 174,428
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See accompanying notes to condensed financial statements.
MINNESOTA LOGOS, A PARTNERSHIP
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
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Six Months Ended June 30,
1996 1997
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $17,030 174,428
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization 80,463 115,909
Loss on disposition of assets 81,857 440
Changes in assets and liabilities:
Decrease (increase) in assets
Accounts receivable 36,390 43,712
Other current assets 5,775 ( 3,210)
Increase (decrease) in liabilities
Trade accounts payable - ( 16,641)
Accrued expenses ( 8,916) ( 4,586)
Deferred income ( 87,804) ( 75,798)
Net cash provided by
operating activities 124,795 234,254
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (267,848) (163,425)
Net cash used in investing
activities (267,848) (163,425)
CASH FLOWS PROVIDED BY (USED IN)
FINANCING ACTIVITIES
Advances from affiliates 143,053 ( 70,829)
Net cash provided by (used in)
financing activities 143,053 ( 70,829)
Net increase in cash - -
Cash, beginning of period 2,500 2,500
Cash, end of period 2,500 2,500
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See accompanying notes to condensed financial statements.
MINNESOTA LOGOS, A PARTNERSHIP
NOTES TO CONDENSED FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The information included in the foregoing interim financial statements is
unaudited. In the opinion of management, all adjustments, consisting of
normal recurring adjustments, necessary for a fair presentation of financial
position and results of operations for the interim periods presented have
been reflected herein. The results of operations for interim periods are
not necessarily indicative of the results to be expected for the entire
year. These condensed financial statements should be read in conjunction
with the financial statements, of Minnesota Logos, a Partnership (the
Partnership) and the notes thereto included in the Partnership's annual
report on Form 10-K for the year ended October 31, 1996.
Organization
The Partnership is 95% owned by Minnesota Logos, Inc., whose ultimate parent
is Lamar Advertising Company ("LAC"). Global Contracting, L.L.P. owns the
remaining 5% of the Partnership.
The Partnership was awarded the Minnesota state logo sign franchise
effective August 1995. Its principal service is to provide interstate logo
advertising in the state of Minnesota.
Change of Fiscal Year End
On December 17, 1996, the General Partner of the Partnership determined to
change the Partnership's fiscal year such that the Partnership's fiscal year
shall end on December 31 of each year. The Partnership's last fiscal year
ended on October 31, 1996. The two-month period from November 1, 1996 to
December 31, 1996 was treated as a transition period that was not a part of
fiscal year 1996 or fiscal year 1997, and was reported on Form 10-Q/T.
Affiliates
The Partnership is affiliated through common ownership, directorate control
and common management with LAC, The Lamar Corporation and their
subsidiaries.
Commitments and Other Contingencies
The Partnership is a guarantor, jointly and severally with other affiliated
companies, of the payment of approximately $255,000,000 in senior
subordinated notes issued by its parent, LAC.
The Partnerships employees are covered by LAC's self-insured group health
program. Coverage is available to all employees who work in excess of 30
hours per week. The Partnership and/or parent is obligated to pay all
claims on these policies which are in excess of premiums up to policy limits
of $150,000 per employee, per claim, per year, at which point reinsurance
pays any additional charges. The Partnership is also self-insured with
respect to its income disability benefits and against casualty losses on
logo sign structures.
ITEM 2.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
LIQUIDITY AND CAPITAL RESOURCES
The Partnership's net cash provided by operating activities was $234,254 for
the six months ended June 30, 1997, which consists of the Partnership's net
income of $174,428, non-cash items of $116,349, a net decrease in assets of
$40,502 and net decrease in liabilities of $97,025. Net cash used in
investing activities is $163,425. Cash flows used in financing activities
were $70,829 entirely from advances from affiliates. As a result of the
above factors, there is no change in cash for the six months ended June 30,
1997.
RESULTS OF OPERATIONS
Six months ended June 30, 1996 as compared to six months ended June 30, 1997
Revenues for the six months ended June 30, 1997 increased $89,000 to
$514,001 from $425,001 for the same period in 1996. This increase was due
to the continued development of the logo sign program.
Operating expenses exclusive of depreciation and amortization for the six
months ended June 30, 1997 decreased $22,427 to $223,224 from $245,651 for
the same period in 1996 due to operating efficiencies generated as a result
of the continued development of the program.
Depreciation and amortization expense for the six months ended June 30, 1997
increased $35,446 as compared to the same period in 1996.
Due to the above factors operating income for the six months ended June 30,
1997 increased $75,981 to $174,868 from $98,887 for the same period in 1996.
As a result of the foregoing factors net earnings for the six months ended
June 30, 1997 increased $157,398 to $174,428 from a net income of $17,030
for the same period in 1996.
Three months ended June 30, 1996, as compared to three months ended June 30,
1997
Revenues for the three months ended June 30, 1997 increased $47,579 to
$268,830 from $221,251 for the same period in 1996. This increase was due
to the continued development of the logo sign program.
Operating expenses exclusive of depreciation and amortization for the three
months ended June 30, 1997 remained relatively constant as compared to the
same period in 1996.
Depreciation and amortization for the three months ended June 30, 1997
increased $8,231 as compared to the same period in 1996.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Due to the above factors operating income for the three months ended June
30, 1997 increased $32,567 to $116,118 from $83,551 for the same period in
1996.
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISKS
Not applicable.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibits 27.1 Financial Data Schedule.
(b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MINNESOTA LOGOS, A PARTNERSHIP,
(Registrant) BY MINNESOTA LOGOS, INC.,
ITS GENERAL PARTNER
August 13, 1997 /s/ Keith A. Istre
_____________________________ ____________________________
Date Keith A. Istre
Chief Financial and Accounting
Officer and Director
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